Arena across from Xcel sought

The city of St. Paul is proposing to build, own and operate an ice arena across the street from the Xcel Energy Center, but first it needs the state of Minnesota to forgive a loan.

Bills introduced Monday in the state House and Senate call for about $33 million in loan forgiveness, which the city would put into the arena. The bill also would allow the city to issue up to $40 million in bonds to help finance the project.

The project is the Pond, a single sheet of ice housed in a three-story, 120,000-square-foot building with seating for up to 4,000 people. Construction is estimated to cost between $35 million and $40 million.

The idea is to provide a place for the Minnesota Wild to practice, to host amateur ice hockey and figure skating events, to handle overflow from Xcel Center events and to give downtown visitors another reason to hang out and spend time and money.

Although the state and the city face drastic budget deficits, St. Paul officials say moving ahead with the project will create 200 jobs and bring in more money. Early estimates call for the rink to make at least $4 million annually.

City officials are optimistic that the proposal will gain support in the Legislature, but past attempts at getting the Xcel loan forgiven have not panned out.

The city's argument this time, however, is that the state would recoup more money from the rink's existence than it gets in payments on the Xcel loan, said Wendy Underwood, the city's lobbyist.

The rink would be an addition to the Minnesota Event District, an area of downtown attractions that serves "a statewide significance," not just St. Paul, Underwood said. It includes the RiverCentre complex and Xcel, the Ordway Center for Performing Arts and the Science Museum of Minnesota.

Nearly 4.5 million people pass through the district per year, generating $200 million from spending on various services, tickets, meals and hotels, city officials say.

The site, known either as Seven Corners or Cleveland Circle, has been the subject of many past development discussions. It was pitched to hold a Twins ballpark in the 1990s and later as a location for a Target store. In 2007 a developer planned shops, a hotel and an ice rink.

Today, it's just a blacktopped lot. But it's owned by the city, a fact officials are playing up.

"Bottom line, it's one of those projects where we can get people back to work right away," said Mayor Chris Coleman. If financing were approved, dirt could turn this year.

The city's Parks and Recreation Department would be in charge of scheduling activities at the rink.

Bill Robertson, Wild vice president of communications and broadcasting, said the team is willing to be a tenant and pay rent if the city builds the facility.

Having the Wild as a primary renter will help keep costs down for everybody else, Underwood said.

Sen. Dick Cohen, DFL-St. Paul, said he hasn't had a chance to gauge the enthusiasm of his colleagues.

A proposal last year calling for forgiveness of the loan made it to the final finance bill before being cut during negotiations. In the past, Gov. Tim Pawlenty has not been supportive of forgiving the Xcel loan.